Which of the following is true regarding inventory adjustments under IFRS?

Answer (B) is correct. Both IFRS and U.S. GAAP require the cost of inventory to be written down if the utility of the goods is impaired. Under IFRS, inventories are measured subsequent to initial recognition at the lower of cost and net realizable value (NRV), with NRV assessed each period. Moreover, unlike U.S. GAAP, IFRS permit inventory to be written up to the lower of cost and NRV if previously written down. The reversal is permissible only to the extent of the prior write-down.